Cash Transactions & Tax Time, Hold on to your receipts, folks!
New rules around cash transactions are shaking things up for TaxSeason . Let’s break it down:
1. 10K Limit: Transactions exceeding ₹10,000 in cash? You’re under Section 40(A)(3)’s scrutiny .
2. 95% Audit: Businesses with ₹95 lakh+ turnover & cash transactions exceeding 5% of total income? Get ready for an audit under Section 44AB ️.
3. 8% Presumptive Tax: Section 44AD offers a simpler tax calculation, but it just went up to 8% profit .
4. 80D Restriction: Medical expenses paid in cash above ₹10,000 won’t be eligible for deduction under Section 80D .
5. 2K Donation Limit: Section 80G donations exceeding ₹2,000 in cash won’t get tax benefits .
6. 80GGB/GGC Not Allowed: Forget cash donations for these sections – they’re a no-go now .
7. 80JJAA Restriction: Cash investments in startups under Section 80JJAA are prohibited .
8. 194N TDS: Withdrawals exceeding ₹20 lakh in cash might trigger TDS under Section 194N .
9. 20K Loan Limit: Section 269SS/T restricts cash loans to ₹20,000 for businesses ️.
2 Lakh Receipt Limit Receipts exceeding ₹2 lakh in cash require a Tax Deducted at Source (TDS) under Section 269ST .
Phew! That’s a lot to remember. Remember, proper record-keeping is key to a smooth tax season. Need help? efiletax can guide you through the complexities .